As per Presidential Decree numbered 2279, published in the Official Gazette numbered 31076 on 22 March 2020 ("Presidential Decree") as part of the measures taken to prevent the spread of the COVID-19 epidemic, all enforcement and bankruptcy proceedings across the country have been suspended, save for proceedings related to alimony payments, and any proceedings thereof will not be carried out from 22 March 2020 until 30 April 2020.
Recent Development
In scope of the various response measures implemented by the Turkish government to prevent the spread of the coronavirus (COVID-19) in Turkey, the President of the Turkish Republic issued the "Decree to Suspend Enforcement and Bankruptcy Proceedings" on March 22, 2020, in accordance with Article 330, "Suspension In Case of Emergency", of the Enforcement and Bankruptcy Law ("EBL").
What Does the Decision Say?
Coronavirus (Covid-19), Uyuşmazlık Çözümü
COVID-19 (korona virüs) salgın hastalığının ülkemizde yayılmasını önlemek amacıyla alınan tedbirler kapsamında; 22.03.2020 tarihli ve 31076 sayılı Resmî Gazete’de İcra ve İflas Takiplerinin Durdurulması Hakkında Cumhurbaşkanı Kararı (“Cumhurbaşkanı Kararı”) yayımlanmış ve yürürlüğe girmiştir.
Cumhurbaşkanı Kararı’nın 1. (birinci) maddesi ile;
The outbreak of COVID-19 has been declared as a global pandemic by the World Health Organization on March 11, 2020. As the outbreak has become a critical threat, every country has started taking significant measures to protect people’s health. Turkey, as a response to the outbreak, has also taken several legal measures as well as social measures to ensure the health of the community.
Recent Developments
The Law on the Amendment to the Income Tax Law and Certain Laws (the "Omnibus Bill") entered into force upon its publication on the Official Gazette No. 30836 dated July 19, 2019. The Omnibus Bill includes provisions for financial restructuring and tax related matters.
What’s New?
Financial Restructuring
İşbu bilgi notu, 7101 sayılı İcra ve İflâs Kanunu ve Bazı Kanunlarda Değişiklik Yapılması Hakkında Kanun’un (“7101 Sayılı Kanun”) konkordatoya ilişkin bir hüküm olan İcra İflas Kanunu’nun (“İİK”) 296. maddesinin sözleşmelerin yürürlükleri bakımından etkileri hakkında bilgilendirmede bulunmak amacıyla hazırlanmıştır.
Konkordatoya ilişkin yapılan değişikliklerle kanun koyucu maddi hukuka müdahale edebilmektedir. (İİK madde 294/1, 294/3, 294/4, 294/6, 296/1, 296/2).
Yeni Gelişme
Türkiye Bankalar Birliği, hazırladığı Finansal Yeniden Yapılandırma Çerçeve Anlaşması'nı ("Önceki Çerçeve Anlaşma") büyük ölçekli ("Büyük Ölçekli Çerçeve Anlaşma") ve küçük ölçekli ("Küçük Ölçekli Çerçeve Anlaşma") borçlular için iki farklı çerçeve sözleşme olacak şekilde bölmek üzere değişiklik yaptı.
Değişiklik ne getiriyor?
Recent Development
The Financial Restructuring Framework Agreement ("PreviousFA") drafted by the Banks Association of Turkey was revised to be divided into two separate framework agreements for large scale (the "Large Scale FA") and small-scale (the "Small Scale FA") debtors.
What's New?
I. DEFINITIONS
"Banking Law" means the Banking Law of Turkey No. 5411.
"BRSA" means the Banking Regulatory and Supervisory Authority of Turkey.
"Creditors" means Turkish banks, financial leasing companies, factoring companies and financing companies and Foreign Credit Institutions and International Organizations.
1. Nature of process
Chapter 11 used to effect operational restructuring, deleverage balance sheet, and/or commence asset sale of the business as a going concern
Insolvency Act process primarily used to effect a pre-packaged sale of the business or assets effected by administrators (i.e. external qualified appointees).